Can you roll over your 401(k)?
From a former employer
Yes. Once you've left a job, the money in that employer's 401(k), 403(b) or 457(b) plan can generally be moved to an IRA whenever you choose.
From your current employer
Maybe. Plans aren't required to let active employees move money out. Many allow an "in-service" rollover once you reach 59½, and some allow it for certain parts of your balance earlier. Your plan's summary plan description or HR department can tell you what's permitted.
Direct vs indirect rollover
| Direct rollover | Indirect rollover | |
|---|---|---|
| Who gets the money | Your new IRA custodian | You |
| Tax withheld | None | 20% held back by the plan |
| Deadline | None | 60 days to redeposit the full amount |
| Risk | Low | Miss the deadline and it's taxed as income |
With an indirect rollover, you'd have to make up the withheld 20% from your own pocket to roll over the full balance, then wait for a refund at tax time. That's why a direct rollover is almost always the better choice.
Step by step
- Check eligibility with your plan administrator, especially if you still work there.
- Choose a gold IRA company. It will usually open the self-directed IRA with its partner custodian. Our company comparison can help.
- Request a direct rollover from your 401(k), payable to the new custodian "for the benefit of" you. The gold IRA company often prepares the forms.
- Wait for the funds to arrive, typically one to three weeks.
- Choose your metals and confirm the price per item in writing.
- Metals ship to the depository, and you'll see them on your custodian statements.
Our recommended provider's free kit walks through the 401(k) rollover paperwork, and its specialists handle most of it for you. Best fit if you have $50,000 or more to move.
Request the Free KitTraditional vs Roth money
Pre-tax 401(k) money goes into a traditional IRA with no tax. Roth 401(k) money should go into a Roth IRA to stay tax-free. If you roll pre-tax money into a Roth IRA, that's a conversion and the amount is taxed as income that year. See our Roth gold IRA guide.
How much to move
You don't have to roll over everything. Many people move part of a balance into metals and leave the rest invested in stocks and bonds, either in the 401(k) or in a regular IRA. Fees are flat-rate, so very small gold IRAs are expensive relative to their size; see gold IRA fees.
Frequently asked questions
Will my employer know?
If you still work there and do an in-service rollover, the plan administrator processes it, so yes. It doesn't affect your job or future contributions.
Can I roll over a 401(k) loan?
An outstanding loan usually has to be repaid or it's treated as a distribution when you leave. Ask your plan before starting.